Dangote Refinery Attributes PMS Price Adjustment to Global Crude Oil Surge
Dangote Petroleum Refinery has clarified that the recent adjustment in its ex-depot price for Premium Motor Spirit (PMS) was necessitated by a sharp increase in global crude oil prices. In a statement, the company emphasized that crude oil, being the primary raw material for PMS production, directly impacts the cost of refined products.
Explaining the adjustment, Dangote Refinery revealed that its ex-depot price was increased by 5%, moving from N899.50 to N950 per litre. This is in contrast to the 15% surge in global crude oil prices, which saw Brent Crude rise from $70 to $82 per barrel within days. The company also highlighted that Nigerian crude attracts an additional premium of about $3 per barrel in the international market.
Despite these challenges, the refinery has maintained its Single-Point Mooring (SPM) ex-vessel price at N895 per litre, demonstrating its commitment to mitigating the impact of global price volatility on consumers. Retail partners, including Ardova, Heyden, and MRS Holdings, have been instructed to maintain a uniform pump price of N970 per litre nationwide, with the refinery absorbing increased logistics costs to ensure consistency across all 36 states and the Federal Capital Territory (FCT).
Shielding Nigerians from Global Volatility
The statement further noted that Dangote Refinery has absorbed approximately 50% of the additional costs resulting from the surge in global crude prices. Without this intervention, the pump price of PMS could have ranged between N1,150 and N1,200 per litre in some locations.
“Affordability and quality remain central to our mission,” the statement read, adding that the company’s majority Nigerian ownership reinforces its commitment to shielding consumers from the full impact of international oil price fluctuations.
Transparency and Governance Initiatives
In a move to foster transparency, Dangote Refinery announced plans to publish its ex-depot, ex-vessel, and pump prices weekly. This initiative aims to prevent exploitation and reassure Nigerians of the company’s dedication to good governance and fair pricing.
A Visionary Initiative
Expressing gratitude to President Bola Ahmed Tinubu, the refinery lauded the “Naira for Crude” initiative, describing it as a groundbreaking policy. According to the company, the initiative ensures consistent access to high-quality PMS for Nigerians while insulating the local market from the unpredictable swings of the global oil market.
Commitment to a Resilient Economy
“Dangote Refinery remains steadfast in delivering reliable, top-quality petrol at competitive prices,” the company affirmed. It also emphasized its role in contributing to the development of a self-sufficient Nigerian economy, resilient to external market conditions.
The refinery thanked Nigerians for their continued trust and support, pledging to prioritize their best interests amid the evolving dynamics of the global oil market.
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